Calculating net income and earnings after a stock split
Not what you're looking for?
Please help with the following problem.
During the year ended December 31,2009, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2008, the firm reported net income of $3,703,920 for 2008, with an average 268,400 shares of common stock outstanding for that year. There was no preferred stock.
Required:
a. What amount of net income for 2008 will be reported in Gluco's 2009 annual report?
b. Calculate Gluco's earnings per share for 2008 that would have been reported in the 2008 annual report.
c. Calculate Gluco's earnings per share for 2008 that will be reported in the 2009 annual report for comparative purpose.
Purchase this Solution
Solution Summary
In this solution the concept of earnings per share and net income are explored, with emphasis placed on what happens after the stock splits and how this information is reported on future filings.
Solution Preview
During the year ended December 31,2009, Gluco, Inc., split its stock on a 3-for-1 basis. In its annual report for 2008, the firm reported net income of $3,703,920 for 2008, with an average 268,400 shares of common stock ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)